How To Start A Candle Making Business, Step By Step
If you love being creative, starting a candle making business can be a great way to make your hobby pay for itself – whether that’s as a side project or a full-time business. Candles have become an essential home decor item with the global market currently estimated at US$354 million and projected to reach US$574.4 Million by 2027.
In addition to buying candles as a focus point for their home decor, customers buy candles for aromatherapy, stress reduction and creating a relaxing and spa-like environment. The commercial use of candles has also seen a sharp increase, with spas, holistic therapists and shops using scented candles to create an ambient environment for their customers.
With profit margins upwards of 50%, candle making business can be extremely profitable. It’s also a scalable business with the opportunity of expanding your core range to include other scented products like diffusers, soaps and lotions. You can start from your candle making business from the kitchen table and go on to expand and scale just as my client Emma has done.
Related Post: From Redundancy to Start-up: How One Woman Built A Candle Making Business From Scratch
Because it doesn’t require much equipment or technical knowledge to start a candle making business, the start-up costs are relatively low. Costs typically include equipment like a double boiler, pouring pots, and jars, as well as packaging and creating a strong visual brand identity. You should plan to spend a minimum of £1,000 to start your candle business off the ground. More if you plan to invest in your brand strategy,
Selling candles online gives you the opportunity to get your products in front of customers quickly and easily. But you don’t have to just sell online. Candles are easy to sell anywhere. They travel well, so you can sell them both online and offline. You can set up a candle stall at craft fairs and local markets, and when you feel ready, approach retailers about selling your candles too.
Read how my client Emma went from being made redundant during the pandemic to starting an artisan candle-making business. One which she has recently moved from her kitchen to a small industrial unit.
What You Need To Know About Starting A Candle Making Business
You may be thinking about starting a candle making business because you’ve got an existing hobby or skill that you’d like to make money from. Or perhaps you’re like my client, Emma, who learned to make candles by watching YouTube videos during lockdown v1. While the creative side is important, running a business involves wearing an array of hats including:
Making your products.
Developing new products,
Marketing your business and selling your products.
Managing money.
Keeping business records.
Filing tax returns and confirmation statements with Companies House.
How Much Does It Cost To Start A Candle Making Business?
Starting a candle making business doesn’t need to be expensive, especially if you’re making a small number of products to begin with. In fact, it’s a relatively low-cost market to enter. Here are some of the start-up costs involved:
The right candle making equipment which will include candle wax, candle wicks, scents, dyes, candle glasses, moulds, a double boiler and thermometer.
The cost of materials.
Brand strategy.
Visual identity and product photography.
Packaging, branded labels and gift boxes.
Although some marketing can be done without spending much at all, you will want to create a budget. Take a look at my complete small business marketing guide for more information.
The fees to run a candle stall at craft fairs or local markets– but you should be hoping to recoup these through sales.
Related Post: A Complete Guide To Marketing For Small Businesses
The Legal Requirements For Selling Candles
There are no specific legal requirements for selling candles in the UK. Nevertheless, you should be aware of:
The General Product Safety Regulations 2005. You’ll find the government’s guidance on product safety here.
Any specific guidelines from your local trading standards office
Safety and testing regulations. The British Candlemakers Federation has published guidelines on product testing and safety labelling.
How To Start Your Candle Making Business, Step By Step
Are you ready to start your candle making business? Read on for my step-by-step guide.
1. What Type(s) Of Candle Will You Sell?
One of the big advantages of a candle making business is the opportunity to develop a niche market and carve out your space within the marketplace. Here are some of the different ways you can niche:
Scented or aromatherapy candles which are very popular.
Candles which are used mainly for decorative purposes.
Soy candles which are renewable.
Vegan candles for people who are concerned with the materials businesses use to make their products.
It’s worth bearing in mind that fragrance is the most important buying factor for customers today according to the National Candle Association. In fact, three-quarters of candle buyers say it is “extremely important” or “very important” in their selection of a candle.
One way to stand out from your competition is to create interesting fragrances. Developing a unique blend which immediately carves out a place in the market for you as for example newcomer, Boy Smells has done. Their gender binary scents of typically "feminine" or "masculine" notes such as LES with its blackcurrant and peach with cardamom and white cedar (and named after the French plural article used for both masculine and feminine nouns) are designed to appeal to everybody.
My client Emma has made both fragrance and sustainability differentiating factors.
Related Post: From Redundancy to Start-up: How One Woman Built A Candle Making Business From Scratch
2. Do Your Market Research
Research your target market - the people you want to reach with your marketing efforts – in detail. These are the people most interested in your products and likely to convert into customers. The candle industry is usually broken down into three main target markets:
Prestige: The luxury candle market is booming and is the fastest-growing category within the $4 billion prestige fragrance market which includes perfume. They’re known for their premium packaging, fragrances, and emphasis on brand storytelling. Pricing varies. Aerin candles retail from between £50 and £295 in the UK for example.
Mid-market: The mid-tier market is saturated with scented candles which have broad appeal. Brands like Jo Malone, Diptyque and The White Company are popular. If you want to carve out a niche within this market, you’ll need other differentiating factors to help you stand out, for example your environment and/ or ethical credentials.
Mass market: These candles are the most affordable and you’ll typically find them in well-known retail outlets and supermarkets. You’re unlikely to find success in this market, however.
Decide on which market you want to go after. Choosing your market will help you make all your key business decisions - from sourcing materials to the brand, packaging and marketing strategy. Once you’ve decided on the segment, you’ll then need to decide on the types of candles you want to create.
As part of your research, you should take note of the types of candles customers are buying. Are your target customers concerned about the environment in which case eco-friendly and/ or vegan candles may be best suited to your market?
3. Create A Business Plan
A business plan is one of the most important documents to write when you’re starting a business. Businesses typically fail because of a lack of short-term and long-term planning. A good business plan not only helps you determine the specific steps necessary for you to make your business ideas succeed, but it also helps you to achieve short-term and long-term objectives.
Most business plans typically follow a similar format and there are tried and tested ways of structuring one. Read my guide to writing a business plan for a new company.
4, Put Together A Budget
A budget is an essential part of running a business because it helps you to keep track of income, anticipate expenses, and plan for the future. To work out your budget, you’ll need to think about:
Set-up costs (including equipment and materials).
How much time it takes to make your product.
How much each candle costs you to make.
Shipping costs if you’re selling online.
Related Post: How to Prepare a Budget (and Download a Free Budget Template)
5. Determine Your Product Catalogue
What are you going to sell? You’ll need at least one hero product – bestsellers which communicate your brand message and values to your audience. Brands which have a hero product are better positioned to be trusted, loved, bought and recommended by their customers. Companies which have built their brands on the back of hero products include Elizabeth Arden’s Eight Hour Cream, Estée Lauder's Advanced Night Repair and La Mer's Crème de La Mer.
Will you offer seasonal products? The White Company’s Christmas candle is one of their bestselling products in the winter, both in the run up to Christmas as people decorate their houses and also as a gift. For some people, the start of the festive season is marked by the purchase of a White Company’s Christmas candle, so iconic has it become.
How will you extend your product line? How about offering other products to extend your ranges? Making diffusers, soaps, perfumes and body creams is an easy transition for many candle makers because the scents have already been developed. Giving your customers a reason to keep coming back will increase the lifetime value of your customers.
6. Funding
How are you going to fund you’re the set-up costs of your business? If you’re going to grow your fledgling startup, you’re probably going to need a cash injection or funding.
From government backed Start Up Loans to grants and crowdfunding, my small business finance guide is a great place to get started.
7. Test Your Product
Perhaps you’ve been selling your candles to family members and friends and getting great feedback. Now is the time to test your product with people who don’t know and love you. Taking them to local markets and craft fairs can be a great way of testing your product and getting feedback. Likewise online platforms like Facebook Marketplace can be great places to start selling your candles and asking your customers for their feedback on the product itself, and anything else they’d be interested in buying.
8. Create The Brand
A. Write Your Brand Strategy
A good brand is particularly crucial for candle businesses because it’s a competitive industry which has grown so significantly over the past decade. Your business plan will include some elements of your brand strategy, but it does not go into the level of detail necessary to create a stand-out brand. Your next step in starting a candle making business is crafting your brand strategy.
Your brand strategy will articulate your values and unique selling point, set the visual direction of your business and help you to attract your target audience. Your marketing strategy flows from your brand strategy and makes it easier to create better products for your customers.
Related Post: How to Develop a Brand Strategy
B. Write Your Brand Story
Telling your brand story is a fast and effective way of connecting with your customers. If you’re not familiar with the term, your brand story recounts the series of events that inspired you to start your candle making business and explains how that narrative drives your mission today. Just like the characters in your favourite books and films, if you can craft a compelling brand story, your audience will remember your business because they engage with it on an emotional level.
The reason for this is the human brain is wired to respond to well-crafted stories. It’s been proven that storytelling is the best way to capture people’s attention, bake information into their memories, and forge close, personal bonds.
Related Post: How to Write a Brand Story
C. Take Amazing Product Photos
Do not underestimate the importance of having good product photography on your online shop and social media accounts. It’s one of the most powerful tools for enhancing your brand and selling your product and is often more effective than product descriptions.
This is an area to invest your budget so don’t be tempted to scrimp. Photography is an art form which requires technical knowledge to pull off successfully. Professional product photographers understand the intricacies of showcasing products in their best light. It’s not simply about taking the photo, but also about staging it in a way that’s enticing and exciting.
9. Start Manufacturing
If you’re intending to make everything yourself for now, you can skip this step! This also applies if you intend to buy ready-made products wholesale and sell them on.
Manufacturing is a crucial part of your candle making business. To start your search for the right manufacturer, ask around among your contacts. Your local Chamber of Commerce is always a good starting point.
Once you’ve decided on a manufacturer, it’s time to have a sample made. Get your chosen manufacturer to run a small batch of your designs. If possible, test it against another manufacturer. Make sure you factor in time to make any tweaks and changes before you pull the trigger on a full product run.
Think about your potential customer when evaluating the product. Who are you looking to sell to? Are you making for people who care a lot about the overall experience of buying from your brand – from the website to presentation and packaging. Are you selling to people for who sustainability is an important consideration?
10. Think About Where You Intend Sell
Where do you intend to sell your candles – in the short, medium and long term? There are several different channels you can explore.
A. An Online Shop
When it comes to building an ecommerce website, I usually recommend Shopify because you can get a beautiful store, SSL certifications, high-speed web servers, cart abandonment recovery, and other beginner-friendly marketing and sales tools for a small $29 monthly fee.
In most cases, there’s no need to spend your money on website development. Your budget should be invested in your brand identity and beautiful photography and perfectly crafted copy including product descriptions.
The beauty of Shopify is it’s not just a platform for building an online store but has options which grow with your business including Shopify Plus. This makes it suitable for building a multi-channel commerce business, including in-person, retail, marketplace, and social selling.
B. Other Online Opportunities
In addition to Facebook, Instagram and Pinterest, there are other places where you can sell online. Etsy is a well-known candle ‘marketplace’ and will get you in front of customers who are already interested in candle products. Not On The High Street is an online curated marketplace that’s home to over 5,000 of the UK’s best small creative businesses.
C. Start A Stall
A stall at local markets and fairs is a great way to establish your business, introduce yourself to the local community and build up a customer base. It’s a great way to test your product and get feedback before you start selling it more widely. Have a look online and find ones that are nearby. Each one will have different application processes, so contact them individually to find out how to go about setting up a stall at their event.
Related Post: How to Start a Market Stall in the UK
D. Approach Retailers
Once you’ve established your business, bricks-and-mortar retailers are another potential sales route. Start local and approach shops, spas and salons in your area. Ask if they'd be interested in stocking your products. Make sure you're fully prepared before you make an approach, including with reviews and testimonials. Reputable retailers will want to make certain that your products are of the best possible quality and, most importantly, that they'll be popular with their customers.
11. Take Your Product To Market
You’ve tested your candles, you’ve received great feedback and you’re ready to order your first full product run. It’s finally time to get your product out in the world. But before you do, you have a few important decisions to make. Think about how you’re going to:
Price your candles.
Create an online shop.
Package your products.
Ship your products.
Deal with returns and customer issues.
Market your brand.
Ensure you’ll have sufficient stock for new seasons and busy periods.
This may all be in your business plan, but it’s still a good idea to go back over these areas and refine them before you go into full-scale production.
12. Marketing Your Candle Making Business
There are many different media to choose from when it comes to marketing your candle making business. Really good SEO. Pinterest and social media are the obvious ones. What’s important is you match your target audience with the correct media for your brand.
I recommend you work through the various owned, earned and paid media channels to determine which ones are most suitable for your business. During the startup phase, focus on a handful of channels which you can execute well and which you’re as confident as you can be will deliver sales.
My client Emma was able to kick start her candle making business because she’d worked in PR and had excellent contacts working for the glossy magazines. But she also deployed other marketing strategies including SEO, Pinterest, social media and getting beautiful lifestyle websites to join her affiliate programme.
Related Post: A Complete Guide To Marketing For Small Businesses
13. The Importance of Christmas
Christmas is a key date in your calendar. According to the National Candle Association, approximately 35% of candle sales happen during the Christmas holiday season with 76% of buyers viewing candles as a holiday gift.
Bear in mind that people also buy winter candles as a focal point for their Christmas home décor. My own Christmas shopping starts in early December with me treating myself to the White Company winter candle because the warm, spicy aroma of cinnamon, clove, nutmeg and orange gives me all the festive vibes.
Prepare for the Christmas season by creating a festive campaign with special promotions and adverts targeted at potential customers.
14. Create More Selling Opportunities
One of my favourite ways to create more selling opportunities is to offer your customers subscription boxes. You could offer a Candle of the Month, where customers get a brand-new candle every month for a set price. This offers your customers a convenient and personalised buy what they want and need on a recurring basis. This will provide your business with predictable monthly recurring revenue and is great for cash flow because typically full payment is made up front.
Related Post: How to Create a Subscription Service
15. Scale Up
Once you’ve got your candle making business off the ground and got to understand the reality of production and fulfilment, scaling may well be on your mind as an ambitious business owner. If that’s the case, it’s time to think about how you can bring in new products to help you grow and consider your product strategy going forward.
The beauty of starting a candle making business is you have the opportunity of repurposing fragrances for products like diffusers, soaps, shampoos, lotions, perfumes, and other things to make and sell online. It’s an easy transition for many candle makers because the fragrances are already developed; you just need to create the new product.
You can then cross-sell and upsell which will drive more revenue from your existing customers and give them more reasons to keep coming back to you.
Final Thoughts
If you love being creative, candle making is a great business to start. You can launch it as a side hustle and build your brand at a pace which suits you. If you have the passion, believe in what you’re doing and simply keep going, your hard work will pay off. And one day, you could have a scalable business with unlimited potential.
Want to Start a Candle Making Business?
Book a free, no-obligation consultation call and let’s talk about how we can work together to bring your vision to life!